Expect Another Tumble for NACM’s Upcoming Credit Managers' Index

Although not entirely absent of positive news, NACM’s Credit Managers’ Index (CMI) for June is expected to show more worrisome trends than any time so far in 2016. And the United Kingdom’s vote to exit the European Union is not the scapegoat … at least for now.

Preliminary CMI data, which will be available Thursday on the NACM website, seem to indicate that industries troubled last winter are again struggling and ripe to drag down otherwise expanding sectors. One “significant drop” that is expected in the favorable factors categories could be of particular concern, according to NACM Economist Chris Kuehl, Ph.D.

“Either there has been a reduction in the amount of credit requested or credit is not available at the same level as before,” Kuehl notes.

In addition, unfavorable factors categories such as accounts placed for collections, dollar amount for customer deductions and disputes stayed out of contraction territory in the May CMI by narrow margins. That is not expected to be the case in June and, because the survey of credit and financial professionals closed before the vote, the results do not even factor in potential fallout from the “Brexit.”

- Brian Shappell, CBA, CICP, managing editor
Visit www.nacm.org/cmi Thursday for full June CMI results and analysis. CMI archives can also be accessed by clicking here.

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